Jet Air up 17% on likely deal with Etihad

Shares of Jet Airways climbed 17 percent to Rs 524.20 on media reports that its stake sale deal with Etihad may take off soon.

According to CNBC-TV18 sources, Jet Air is learnt to have revised certain clauses like agreeing to give four seats to Etihad on its Board..

Jet Air may  be open to price negotiations as well. The Jet-Etihad deal valuation is likely to be revised, said exclusive sources.

Earlier, the deal was stuck when Etihad said that instead of two, it would want four members on Jet's board.

The deal was likely to be announced last week, but Hamed bin Zayed al-Nahayan, chairman of Etihad Airways, told media that there were certain issues to be dealt with, before its signs agreement with Jet Air.

Since September last year, reports of  likely Jet-Etihad started doing rounds and it was only in December that Jet confirmed about it, saying that it is still in negotiation phase. "As and when the deal will happen, we will make an announcement," it had said.

Etihad is keen to pick up 24 percent stakes in Jet Air at around USD 330 million. Both parties still need to discuss issues related to Board composition and revenue sharing model.

Meanwhile, sources also inform that Etihad had bought Jet's slots at London's Heathrow airport for $70 million, but did not say whether that was a part of the stake buy agreement.
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Did you read: Jet-Etihad deal hits roadbloack, no compromise seen